A major drawback of Mean-Variance and Stochastic Dominance investment criteria is that they may fail to determine dominance even in situations when all “reasonable” decision-makers would clearly prefer one alternative over another. Levy and Leshno [1] suggest Almost Stochastic Dominance (ASD) as a remedy. This paper develops algorithms for deriving the ASD efficient sets. Empirical application ...

Choquet expected utility which uses capacities (i.e. nonadditive probability measures) in place of a-additive probability measures has been introduced to decision making under uncertainty to cope with observed effects of ambiguity aversion like the Ellsberg paradox. In this paper we present necessary and sufficient conditions for stochastic dominance between capacities (i.e. the expected utilit...

We consider consistent tests for stochastic dominance efficiency at any order of a given portfolio with respect to all possible portfolios constructed from a set of assets. We propose and justify approaches based on simulation and the block bootstrap to achieve valid inference in a time series setting. The test statistics and the estimators are computed using linear and mixed integer programmin...

Asymptotic and bootstrap tests are studied for testing whether there is a relation of stochastic dominance between two distributions. These tests have a null hypothesis of nondominance, with the advantage that, if this null is rejected, then all that is left is dominance. This also leads us to define and focus on restricted stochastic dominance, the only empirically useful form of dominance rel...

Stochastic dominance, which is based on the comparison of distribution functions, is one of the most popular preference measures. However, its use is limited to the case where the goal is to compare pairs of distribution functions, whereas in many cases it is interesting to compare sets of distribution functions: this may be the case for instance when the available information does not allow to...

Social scientists often compare subclasses of populations or manipulatons. For example, in comparing task-completion times across two levels of a manipulations, if one group has faster overall mean response, it is natural to ask if the fastest 10% of the first group has a faster mean than the fastest 10% of the second group, and so on. Delta plots, a type of quantilequantile residual plot used ...

Stochastic dominance relations are well-studied in statistics, decision theory and economics. Recently, there has been significant interest in introducing dominance relations into stochastic optimization problems as constraints. In the discrete case, stochastic optimization models involving second order stochastic dominance (SSD) constraints can be solved by linear programming (LP). However, pr...

Fluctuations in perceptual dominance during binocular rivalry exhibit several hallmark characteristics. First, dominance switches are not periodic but, instead, stochastic: perception changes unpredictably. Second, despite being stochastic, average durations of rivalry dominance vary dependent on the strength of the rival stimuli: variations in contrast, luminance, or spatial frequency produce ...

The equations satisfied by the gene frequency for various cases of dominance are converted to the type of stochastic differential equation associated with a diffusion process. Using the physical approach to stochastic integrals, the solutions of the corresponding Fokker-Planck equations are obtained. Conditions for quasifixation are investigated and observed frequencies of the gene medionigra o...